The Rise of the Digital Shopper
84%
of shoppers do their own research for the best deal before purchasing2
The statistics are clear: online retail is experiencing explosive growth. By 2040, a staggering 95% of purchases are projected to be made online.1 This dominance isn’t surprising. Online platforms offer unmatched convenience and access, along with fertile ground for innovation – key factors in attracting and retaining customers. Simply put, the acceleration of digital is becoming the “new normal,” and it provides a significant opportunity for personalization.
In order to understand the state of the shopper, the on-demand webinar reviews some very interesting statistics on generations and consumption. The key takeaway is that no matter what generation a shopper belongs to, the way they seek and engage with information is changing. Online is and will continue to be the entry point for browsing for information; this creates an opportunity for personalized content.
Meeting Evolving Expectations
Although exciting, this digital transformation presents a challenge: keeping pace with the ever-evolving expectations of online shoppers. Consumers are demanding a richer, more informative and personalized online experience. Today’s digital shopper wants to know if products will fit into their lifestyle and are demanding more product information including more visuals and tailored content to make informed decisions.
Unfortunately, many retailers struggle to keep pace with shoppers’ evolving expectations, particularly regarding access to detailed and/or accurate product information. This represents a significant missed opportunity.
Additionally, with the rise of ecommerce and increased inflation, we have seen the erosion of shoppers’ loyalty. As a result, a whopping 75% of shoppers are likely to switch brands if they don’t find the necessary product information3; and instead, “when enhanced content is present, shoppers are 25% more likely to make a purchase”4, says Phil Gabillia, Global Expansion Director at NIQ Brandbank. This highlights the crucial role of not only personalized content, but also detailed product descriptions, specifications, and anything else that empowers consumers to make informed decisions.
Personalization Strategies
The good news for retailers facing the ever-evolving online shopper is a powerful strategy: personalization. A staggering 72% of consumers today expect retailers to know them on a personal level4. How can this be accomplished? It’s about leveraging data and technology to understand individual customer needs and preferences.
Here’s 6 ways retailers can personalize the online shopping journey for your customers:
1.
Smart Shopping Lists
2.
Personalized Grocery Shelf
3.
Personalized Circulars & Offers
4.
Out of Stock Alternatives
5.
Contextual Recommendations
6.
Audience Based Advertising
Mastering these opportunities is a great way to demonstrate non-intrusive knowledge while delighting the customer throughout the journey.
The key isn’t just about offering “something special” for every customer; it’s about understanding core marketing objectives. Successful personalization lies in understanding the fundamentals of shopper behavior.
At a basic level, there are 4 recommendations retailers can focus on when it comes to what an offer can achieve:
1.
Retaining existing customers
2.
Increasing their spending within your store
3.
Upselling
4.
Or winning back those who haven’t shopped with you recently
Any personalized offer can succeed only if it taps into one or more of these fundamental objectives. By leveraging data insights and utilizing technology and AI, you can create personalized offers that resonate with individual customers on a weekly basis, using a variety of tactics to maximize their impact. This approach doesn’t feel intrusive – it feels helpful, building trust and loyalty.
As Sarah Duchazeaubeneix, International Client Director at NIQ points out, “When we think about the art of personalization, it’s going to be a mix of technology innovation, a pinch of creativity, and also tireless effort to understand the customer and to master how we can predict how the customer is likely to behave, and this is even more important for the online world where things are really pacing very fast.”
Ultimately, the online retail landscape is undergoing a rapid evolution. To thrive in this digital age, retailers must prioritize a customer-centric approach and implement effective personalization strategies. By doing so, you can build online shopping experiences that resonate with the demanding digital shopper of 2024. This not only translates to improved customer satisfaction and loyalty, but also drives sales and fuels future growth.
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